The UK government has confirmed plans to extend the Energy Company Obligation (ECO4) scheme by up to nine months beyond March 2026, ensuring thousands of households can still access UK free energy efficiency upgrades.
At Prisma Boiler Grants, we see this extension as a lifeline for families across England, Scotland, and Wales struggling with rising energy bills. Whether it’s boiler replacement in Manchester, loft insulation in Birmingham, or solar panels in Glasgow, the ECO4 extension means continued access to cost-saving, future-proof home improvements.
What Is ECO4 and Why Does It Matter?
The ECO4 scheme places an obligation on major UK gas and electricity companies to fund energy-saving measures in domestic homes. These upgrades often include:
- Boiler replacements
- Cavity wall and loft insulation
- Air source heat pumps
- Solar panels
- Smart heating controls
The aim is twofold: reduce fuel poverty and cut carbon emissions. Since 2013, the ECO scheme has upgraded millions of homes, helping households lower bills while supporting the UK’s net-zero targets.
ECO4 Extended Until Late 2026
Originally due to end in March 2026, the Department for Energy Security and Net Zero (DESNZ) has proposed an extension of six to nine months.
This ensures:
- Households still benefit from grants during the transition to a new scheme.
- Installers and suppliers avoid sudden work gaps, keeping the energy efficiency supply chain stable.
- More time for the government to design a successor scheme – expected to be renamed the Warm Homes Obligation.
For homeowners, this means there’s still a chance to apply for boiler grants, insulation upgrades, and other funded retrofits throughout 2026.
Why Is the Extension Needed?
Without ECO4, the government risks a gap in delivering its £13.2 billion Warm Homes Plan, which aims to upgrade 5 million homes this Parliament.
Energy experts warn that removing support too early could:
- Leave vulnerable households without protection.
- Stall the retrofit industry.
- Undermine progress towards net-zero.
As Louise Shooter from Energy UK said, extending ECO4 gives industry and government the breathing space to design a fit-for-purpose replacement.
What Changes Are Coming With ECO4 Extension?
DESNZ outlined several key updates to strengthen consumer protection and improve delivery:
- Stronger Consumer Protections
- More audits and data sharing.
- Stricter supplier oversight to ensure installations meet standards.
- Carry-Over of Savings
- Energy companies can carry over up to 20% of surplus annual bill savings (ABS) into future schemes, reducing compliance risk.
- Updated Retrofit Standards
- New PAS 2035/2030 standards will apply, ensuring high-quality workmanship.
At Prisma Boiler Grants, we welcome these changes because they ensure households in London, Leeds, Cardiff, and Edinburgh get reliable, safe, and long-lasting upgrades.
What Could the Successor Scheme Look Like?
According to Utility Week, the new scheme – expected to launch in 2027 – will:
- Be called the Warm Homes Obligation.
- Include batteries as eligible measures.
- Rely more heavily on solar panels and clean heating systems.
- Allow referrals through the NHS and local authorities, making it easier for vulnerable households to access support.
This marks a shift from profit-driven lead generation towards a more community-based referral system.
How Prisma Boiler Grants Can Help You Now?
The ECO4 extension means there’s still time to secure funded upgrades. At Prisma, we help households across the UK apply for grants and install energy-saving solutions.
Our most requested services include:
- Boiler Replacement in Liverpool and London – replacing inefficient boilers with A-rated systems.
- Loft Insulation in Birmingham and Sheffield – reducing heat loss and cutting energy bills.
- Solar Panels in Glasgow and Edinburgh – generating renewable electricity for long-term savings.
- Central Heating Upgrades in Cardiff and Newcastle – modernizing old systems to meet energy standards.
With ECO4 funding still available, acting now ensures you won’t miss out before the scheme transitions.
Why Local Communities Benefit Most?
Fuel poverty affects millions, particularly in regions with older housing stock such as Northern England, the Midlands, and parts of Scotland. ECO4 funding has already delivered significant improvements in:
- Manchester – thousands of homes fitted with insulation and new boilers.
- Birmingham – major rollouts of loft and cavity wall insulation.
- Glasgow & Edinburgh – uptake of renewable heating and solar panels.
- Cardiff – central heating upgrades for low-income households.
By extending ECO4, these cities and surrounding areas will see even more families lifted out of fuel poverty.
FAQs on ECO4 Extension (2025–2026)
Q1. When does ECO4 end now?
ECO4 was originally set to end in March 2026, but the government plans to extend it until late 2026 (six to nine months).
Q2. Can I still get a free boiler under ECO4?
Yes. Many households in England, Scotland, and Wales still qualify for free boiler replacements, especially if on benefits or low income.
Q3. Will the Warm Homes Obligation replace ECO4?
Yes. From 2027, ECO4 will transition into the Warm Homes Obligation, with expanded measures like batteries and more solar options.
Q4. How do I know if I’m eligible?
Eligibility depends on income, EPC rating, and household vulnerability. You can apply through Prisma Boiler Grants for a free survey.
Q5. Why should I apply before 2026 ends?
Applying early means avoiding last-minute rushes, ensuring funding is secured, and getting upgrades before winter 2026.
Final Thoughts
The ECO4 extension is a win for UK households. It guarantees continued support for boiler upgrades, insulation, and renewable technologies until at least late 2026, while giving the government time to launch the Warm Homes Obligation.
At Prisma Boiler Grants, we’re already helping families in London, Birmingham, Glasgow, and Cardiff prepare for these changes. Whether it’s a boiler replacement, loft insulation, solar panels, or a central heating upgrade, we make the process simple and stress-free. Don’t wait until the scheme closes. Contact Prisma Boiler Grants today to check your eligibility and secure your funded home efficiency upgrade.